Foreign portfolio investors (FPIs) are regaining interest in the Indian stock market due to a firmer rupee, better macroeconomic indicators, and appealing market valuations. In the last six trading days of March, FPIs invested around ₹31,000 crores, decreasing their total monthly outflow to ₹3,973 crores. This surge in investment suggests a possible recovery after months of heavy selling that began in October. Despite a March outflow of ₹34,574 crores and January’s ₹78,027 crores, experts urge caution for domestic investors, with future FPI movements hinging on U.S. President Trump’s tariff decisions on April 2. If tariffs are not stringent, further market rallies may occur; otherwise, selling could resume. Currently, many high-valuation stocks appear attractive, supported by the rupee’s 2% strengthening and renewed investor confidence.
